Implications for U.S.-Canadian Economic Relations

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Canada celebrated a bittersweet 125th anniversary as a nation in 1992, bittersweet because many Canadians fear that their country may soon fall apart. As Quebec decides its own fate of voting for sovereign independence, the rest of Canada could follow suit and splinter as did the former Soviet Union. The likelihood of that actually happening is slim, however, there are major referendums on the coming ballot in Canada that could possibly alter not only the Canadian Constitution but the style and power of the government as well. Canada’s own security is complex and will certainly be drawn-out, however, the United States could be of some assistance.

For the foreseeable future, the most important connection between Canada and the United States are their economic ties and the bilateral relationship for both the U.S. corporate and labor sectors. With over three million jobs tied directly to trade, investment, and tourism linkages with Canada, the United States should be very concerned about what is transpiring north of the border. For far too long the American relationship with Canada has been overlooked and understudied. In this essay Earl H. Fry reports on the Canadian confederation and how it may now be at risk, and how the United States’ own economic well-being may suffer as a result of the serious problems currently confronting Canada.